San Miguel Brewery Inc. (SMB) is holding its annual shareholders meeting today, with market players anticipating that the Philippines’ biggest beer maker will shed some clarity on how it plans to meet the minimum 10 percent public float requirement of the Philippine Stock Exchange.

SMB has a public float of less than 1 percent, while 48 percent is owned by Japanese brewer Kirin Holdings and 51 percent by parent company San Miguel Corp. (SMC).

As the PSE imposed the year-end deadline over dozens of other listed companies, including a handful of other units of SMC,  analysts expect that SMC and Kirin Holdings of Japan would be prompted to reveal their plans for the brewer.

PSE had said that noncompliant firms will be slapped with monetary penalties and will face eventual delisting.  
 But the current situation with SMB presents unique challenges of its own, with uncertainties centering on how the two companies would reduce their holdings to accommodate the rule of the local bourse.  
 This, as Kirin had already expressed its interest to hike its ownership in SMB. Meanwhile, SMC is unlikely to part with its majority stake, unless offered a substantial premium, noted Eagle Equities Inc. president Joey Roxas in a phone interview yesterday.

 Adding to this uncertainty were recent statements by SMC  president Ramon S. Ang reiterating that the conglomerate wants to keep at least 51 percent of all its businesses, an analyst said yesterday.

“I think SMC will find a way to comply,” Roxas said. 

“Or they can also just take [SMB] private. I don’t think Kirin will sell its stake,” Roxas said. The Japanese brewer has been facing slowing growth in its home country, a situation that prompted it to seek investments aboard.

By contrast, SMB continues to post growth, backed by its operations in the Philippines, where it corners 95 percent of the beer market. It also has operations in Hong Kong, Indonesia, mainland China, Thailand, and Vietnam.

Its sales in the first quarter hit P17.52 billion, up 9.4 percent. Of that number, about 88 percent came from domestic operations with the remainder from its business abroad.

 Kirin made its initial investment into SMB in 2009, when it acquired a 43.25 percent stake from SMC, before hiking this to the present 48 percent via a tender offer.

SMB  produces the flagship  San Miguel Pale Pilsen,  Red Horse Beer, Cerveza Negra and Gold Eagle Beer among other brands.